April 03, 2020 / 01:45 PM / By NSE / Header Image
On a monthly basis, The Nigerian Stock Exchange polls trading figures from market operators on their Domestic and Foreign Portfolio Investment (FPI)4 flows. As at 29 February 2020, total transactions at the nation's bourse decreased by 36.93% from N235.46 billion (about $767.23million) in January 20195 to N148.50 billion (about $484.60 million) in February 2020. The performance of the current month when compared to the performance in the same period (February 2019) of the prior year revealed that total transactions decreased by 21.04%. In February 2020, the total value of transactions executed by Domestic investors outperformed transactions executed by Foreign investors by circa 4% as shown in figure 1 below.
A further analysis of the total transactions executed between the current and prior month (January 2020) revealed that total domestic transactions decreased by 53.27% from N165.14 billion in January to N77.16 billion in February 2020. However, total foreign transactions increased marginally by 1.46% from N70.31 billion (about $229.42million) to N71.34 billion (about $232.79 million) between January and February 2020.
Analysis Of Domestic Transactions
The value of domestic transactions executed by Institutional investors outperformed Retail investors by 24% as illustrated in figure 4 below. A comparison of domestic transactions in the current and prior month (January 2020) revealed that retail transactions decreased by 63.81% from N81.67 billion in January 2020 to N29.56 billion in February 2020. Similarly, the institutional composition of the domestic market decreased by 42.97% from N83.47 billion in January 2020 to N47.60 billion in February 2020.
Historical Analysis Of Domestic And Foreign Transactions
The data in figure 7 below, highlights the performance of the market over the last decade. Over a thirteen (13) year period, domestic transactions decreased by 72.30% from N3.556t in 2007 to N985bn in 2019 whilst foreign transactions increased by 53.08% from N616bn to N943bn over the same period.
Total domestic transactions accounted for about 51% of the total transactions carried out in 2019, whilst foreign transactions accounted for about 49% of the total transactions in the same period.
The actual performance referenced 2020A (2020 Actual) shows that total foreign transactions carried out year till date (YTD) is about N141.65 billion whilst total domestic transactions YTD is about N242.30 billion.